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Dealing with mold in your home is more than just an inconvenience — it’s a serious health and safety issue. Mold growth can lead to respiratory problems, structural damage, and declining property value if not addressed promptly. However, the costs of professional mold remediation can add up quickly, leaving homeowners searching for a way to cover the expense without draining their savings.One practical solution to consider is financing the project with a personal loan. This option allows you to tackle the issue immediately while spreading the cost into manageable monthly payments. Keep reading to learn how personal loans can help finance mold remediation, what to look for in a loan, and how to ensure this option fits your financial needs.
Why Mold Remediation Is Important
Mold remediation is essential for maintaining a healthy living environment. Mold can release spores that trigger allergies, asthma, and other respiratory issues, posing serious health risks to you and your family. Additionally, untreated mold growth can spread rapidly, damaging walls, flooring, and furniture, and significantly reducing the value of your property. Addressing the problem promptly prevents these issues from escalating.
How Much Does a Mold Remediation Cost?
Like many home renovation costs, the cost of mold remediation can vary based on the size of your home, the severity of the problem, and where you live. Mold remediation typically costs between $1,500 and $9,000. However, the average homeowner spends $3,500 on mold remediation.
How Does Using a Personal Loan to Finance Mold Remediation Work?
With a personal loan, you apply to borrow money from a bank, credit union, or online lender. If you’re approved for the loan, you receive the funds in a lump sum, and you repay it with interest in regular installments over time.There are many types of personal loans that you can explore to see which one might best suit your situation. For instance, there are secured personal loans that require collateral to back them, and unsecured loans that don’t need collateral. A personal loan may have a fixed interest rate or a variable one. Knowing the different personal options can help you choose the right fit for your mold remediation financing needs.
Things to Look for When Choosing a Personal Loan Lender for Mold Remediation Financing
When using a personal loan for mold remediation financing, you’ll want to compare lenders and consider the following issues:
Timeliness
Payment options
Maximum loan amount
Fees and penalties
Interest rates
Credibility
Here’s information about each one:
Timeliness
To prevent the mold problem from becoming worse, you’ll want to get the funds quickly. Find out how long a lender’s approval process is — some offer approval in hours, others take days. Also, check how long it will take for you to get the money after approval.
Payment Options
Your monthly payment is calculated on the amount you borrowed, the interest rate you’re being charged, and the length of the loan, which is typically between one and seven years. Compare options from different lenders for the best terms. Sometimes a lender will allow you to make extra payments, which would let you pay your loan off early so you owe less interest over the life of the loan.
Maximum Loan Amount
Lenders have different maximum loan amounts. Make sure that any lender you are considering will lend you enough to cover the cost of the mold remediation.
Fees and Penalties
Lenders may charge loan origination fees and/or loan application fees. You may need to pay these fees upfront. Other times, the fees come out of the sum that you’re borrowing, which means you’ll get less money overall. Make sure that you are aware of all fees beforehand. Lenders may also impose penalties, such as late payment fees and prepayment penalties for paying off your loan early. Check to see what the penalties are as you’re exploring different loan options.
Interest Rates
When comparing mold remediation financing options, you’ll see interest rates and annual percentage rates (APR). The interest rate is the interest being charged on the loan. The APR includes the interest rate plus the fees on the loan, which means it represents the total cost of borrowing money. When you’re comparing different lenders, use the APR rather than the interest rate to get a true sense of the cost.
Credibility
You want a reputable, trustworthy lender. Check online reviews of lenders as well as the Better Business Bureau. In addition, make sure the lender is registered in your state and that they have a physical address (the lender’s website should list that information). To avoid personal loan scams, beware of any lender that offers guaranteed approval or asks you for money upfront.
Securing a Personal Loan for Mold Remediation
Applying for a personal loan is generally a fairly easy process. Here’s how it typically works:
Preapproval
With personal loan preapproval, you can find out if you’re likely to qualify for a loan without affecting your credit score. During preapproval, a lender does a soft check on your credit. This is different from a hard credit check that may have a negative impact on your credit score. Once you have preapproval, you can shop around with different lenders to see what estimated rates you can get.
Income Verification
When you apply for a loan, there are personal loan requirements you will need to meet, including proof of employment and income. Lenders want to make sure you have enough income to pay back your loan along with any other debts you may have. They use what’s called a debt-to-income (DTI) ratio to compare your gross (pre-tax) monthly income against your monthly debt payments to make sure you can afford to take on the additional debt of a loan.
Credit Score
Your credit score is important when it comes to qualifying for a personal loan. Lenders consider a borrower’s credit score an indication of how responsible the borrower has been (and will likely continue to be) when it comes to handling credit. Often, lenders offer better interest rates to borrowers who have higher credit scores.
Personal Loans With Lantern
As you’re exploring personal loans for mold remediation, you can quickly and easily compare personal loan rates with Lantern by SoFi. Just fill out one simple form and you’ll get offers from multiple lenders in our marketplace. This can help you find a loan with the best rates and terms for your needs — and it won’t affect your credit score. Find and compare personal loan options with Lantern.
Frequently Asked Questions
What are the mold remediation financing options?
How much does mold remediation cost?
How soon can you get mold remediation financing?
Photo credit: iStock/lovro77
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About the Author
Kelly Boyer Sagert
Kelly Boyer Sagert is an Emmy Award-nominated writer with decades of professional writing experience. As she was getting her writing career off the ground, she spent several years working at a savings and loan institution, working in the following departments: savings, loans, IRAs, and auditing. She has published thousands of pieces online and in print.
